22 December 2017

 

Custodian REIT plc

 

("Custodian REIT" or the "Company")

 

Purchase of Property

 

Custodian REIT (LSE: CREI), the UK property investment company, is pleased to announce a further property purchase. 

 

The Company has acquired a 37,804 sq ft retail warehouse in Leicester, near the Beaumont Shopping Centre and the city's outer ring road with excellent links to the M1.  The unit is occupied by Matalan, with nearby retailers including Tesco, Argos, Wilko and Superdrug.

 

The unit's lease expires on 2 October 2028 with a passing rent of £502,900 per annum, reflecting a net initial yield1 of 7.36%.

 

The Company acquired the property by purchasing the entire issued share capital of BL (Leicester) Limited and its wholly owned subsidiaries, Belgrave Land (Beaumont Leys) Limited and Belgrave Land (Leicester) Limited, which respectively hold the long-leasehold interest in the property and its occupational lease. 

 

The agreed purchase price of £6.661 million was funded from the Company's existing debt resources, resulting in net gearing2 increasing to 22.2% loan to value.

 

Commenting on the acquisition, Richard Shepherd-Cross, Managing Director of Custodian Capital Limited (the Company's discretionary investment manager), said:

 

"Matalan has been trading from this location, adjacent to the 300,000 sq ft Beaumont Shopping Centre, for many years and we are delighted to have completed this acquisition.  We believe the property will enhance Custodian REIT's retail warehouse portfolio with a strongly trading business, which has just invested circa £0.5m re-fitting the store."

 

1 Passing rent divided by purchase price plus purchaser's costs.

2 Gross borrowings less unrestricted cash divided by last published property portfolio valuation.

 

-Ends-

 

For further information, please contact:

 

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli MBE	Tel: +44 (0)116 240 8740
	www.custodiancapital.com
Numis Securities Limited
Nathan Brown / Hugh Jonathan	Tel: +44 (0)20 7260 1000
	www.numiscorp.com
Camarco
Ed Gascoigne-Pees	Tel: +44 (0)20 3757 4984
	www.camarco.co.uk

 

 

Notes to Editors

 

Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014.  Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is principally characterised by properties with individual values of less than £10 million at acquisition. 

 

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By targeting sub £10 million lot size, regional properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth. 

 

Custodian Capital Limited is the discretionary investment manager of the Company. 

 

For more information visit www.custodianreit.com and www.custodiancapital.com.